Agenda Kenya
AgroInnovation

KMC mulls diversification as cash crunch bites

This post was originally published on this site

The Kenya Meat Commission is facing a fresh financial crisis barely eight years after its rebirth.  Established in the early 1950s to provide a ready market for livestock farmers and high quality products to consumers, it now faces a raft of problems that question whether it can survive.

The management has acknowledged inability to pay suppliers, with some invoices dating to October 2012. The firm has a debt of Sh220 million.

KMC requires a facelift through investment in new machinery, diversification and introducing buffer stock to ensure continuous supply throughout the year.

The firm is also considering processing pigs and poultry to end over-reliance on cattle and goats.

The factory is of utmost importance to livestock farmers and the country’s economy. Its poor performance directly affects farmers across the country.

After being closed for 15 years, the firm was re-opened in 2006 geared to supply domestic consumption and for export.

But there are fears Kenya Meat Commission may collapse due to what insiders and partners see as chronic financial mismanagement, inefficiency and corruption.

Suppliers are now calling for the privatisation of the state-owned organisation in the hope that this would lead to more efficient management.

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